- NZD/USD remains on track to close third straight day lower.
- US Dollar Index clings to gains around 92.00.
- Nonfarm Payrolls in the US increased by 379,000 in February.
Following Thursday’s sharp decline, the NZD/USD pair extended its slide on Friday and touched its lowest level since mid-January at 0.7101. Although the pair was able to pull away from its lows, it remains deep in the negative territory in the late American session and was last seen losing 0.68% on the day at 0.7140. On a weekly basis, the pair is down nearly 100 pips.
USD capitalizes on strong US labour market data
The USD continued to gather strength ahead of the weekend after the data published by the US Bureau of Labor Statistics showed that Nonfarm Payrolls in February increased by 379,000. This reading surpassed the market expectation of 182,000 by a wide margin. Additionally, the report revealed that the Unemployment Rate edged lower to 6.2% from 6.3%.
Commenting on the US jobs report, “king dollar may feel more comfortable on its throne. The Fed seems content with its current policy, and unlikely to budge – at least not until its next meeting on March 17,” said FXStreet analyst Yohay Elam. “All in all, the wait for the NFP has caused a pause in dollar gains, and now the greenback has a new green light for gains.”
NFP Quick Analysis: Another greenlight for greenback gains after Powell.
With the initial reaction, the 10-year US Treasury bond yield surged to its highest level in more than a year 1.622% and provided a boost to the greenback. The US Dollar Index (DXY) climbed to its highest level since late November at 91.20 before going into a consolidation phase. At the moment, the DXY is up 0.4% at 92.00.